ANI Pharmaceuticals initiated with an Outperform at Leerink

Leerink initiated coverage of ANI Pharmaceuticals (ANIP) with an Outperform rating and $80 price target The firm believes the market is yet to fully appreciate the evolution of the story towards branded drugs with durable growth potential. The generics business provides a fundamental base, and Leerink sees decent growth potential in the rare disease products even as they occupy a minor position in their respective disease states. ANI Pharmaceuticals trades at a modest premium to specialty/generics peers, and the firm’s thesis is that multiple expansion will occur as investors better appreciate the growth opportunity and the company executes on enhancing its rare disease portfolio.